Iron ore continued its boomlet overnight Tuesday, jumping past $US60 a tonne for the first time in two months.
Working off a jump in Chinese futures prices and rising coking coal prices, the Steel Index price rose 4.9% to $61.40 a tonne.
Dalian iron ore futures also pushed higher, rising more than 6% at one stage yesterday.
Iron ore is now trading at its highest level since August 23, when it also settled at $US61.60, and is within sight of its three-month peak reached on August 16 of $US61.80.
Yesterday was the 12th trading session in a row that iron ore prices have risen and seem to have shaken off the weakness seen from late September which saw the price dip under $US53 a tonne.
In London, BHP Billiton shares rose 3% after a weak day in Australia, while Rio Tinto shares jumped 4.5% after a solid day in Australia with a 2% gain.
Fortescue Metals Group shares jumped to 30 month highs in Australia yesterday after it said it was still confident in the health of the Chinese steel market (and therefore the Chinese economy).
At an investor presentation yesterday, the miner said Chinese demand for iron ore remained “robust” .
“Demand for Fortescue ore remains strong,” the company said, noting it was driven by the property and infrastructure sectors in China.
“(The) iron ore market is in balance with low cost seaborne ore displacing domestic.” Fortescue shares stood out, jumping 6.5% to $5.44, the highest they have been since April, 2014.
